There’s nothing in employment standards laws barring such a demotion and/or pay cut. The chief legal risk is for breach of contract. But as long as there’s nothing in the contract guaranteeing the employee his/her current position or salary, that shouldn’t be an issue. Still, to feel comfortable in the event of a legal challenge, you should be able to show that:
.> You have fair and reasonable performance criteria;
> You communicated those criteria to the manager;
> You applied the criteria fairly;
> The manager really did have performance issues that he/she couldn’t correct despite being given a fair opportunity to do so; and
> You apply the same criteria and procedures consistently (in case the manager has one or more personal characteristic protected from discrimination by human rights law, e.g., a disability).
Hope that helps. Glenn
